Qualifying property for 50% special depreciation allowance

[PAULHA]

Page 9-9 of The Tax Book states:MACRS property with a recovery period of 20 years or less qualifies for this allowance.

Question: Client is in the cement laying business. He constructed and owns a Pole Barn on his own land to keep his equipment protected. The Pole Barn cost $35,500.

Would this property be eligible for this special allowance?

[DaveinTexas]

Great question, but has this been brought up before???

http://forum.thetaxbook.com/archive/index.php/t-678.html

You might be thinking that since the "storage facility" is a pole barn (Farm Building, other than a single purpose building) is usually 20 years recovery under MACRS.

Keep in mind, IRS say metal storage buildings have a 39 year recovery period under MACRS and this barn will not be used in an agricultural activity so I am thinking...39 years. If used in an agricultural activity, I would say 20 years or less (if single use).

No bonus and no Sec 179, but that's my opinion. But, what if this pole barn qualifies as a "canopy or awning"? Hmmm.....but maybe not because, the canopy of awning "Does not include permanent canopies that are an integral part of a building’s structural shell, such as porte-cochere (covered entrances for vehicle drive-up) and porticos (covered porches), or over docks"...from an IRS Cost Segregation Study.

I think you might be stuck with 39 years, no Bonus and no Section 179; non-residential building or structure. That's just me.

[TaxGuyBill]

I agree with DaveinTexas. It is 39 years and no Special Depreciation Allowance.

[PAULHA]

Qualifying property for 50% special depreciation allowance

Thanks to both of you for your input.